https://www.taxtmi.com/caselaws?id=156592 Section 5(3-B) of the Karnataka Sales Tax Act is a penal provision and must be strictly construed. It applies only where goods purchased on declaration are not used for the declared manufacturing purpose without reasonable excuse. It does not extend to an allegedly or false return about the finished product. On the stated facts, the purchaser had used formaldehyde in manufacturing the declared end-product, so penalty under section 5(3-B) was not attracted; any issue with the return or classification of the finished goods was left to other remedies such as assessment correction or prosecution. en-us Tue, 21 Jul 1992 00:00:00 +0530 Sat, 21 Sep 2013 18:29:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156592 Section 5(3-B) of the Karnataka Sales Tax Act is a penal provision and must be strictly construed. It applies only where goods purchased on declaration are not used for the declared manufacturing purpose without reasonable excuse. It does not extend to an allegedly or false return about the finished product. On the stated facts, the purchaser had used formaldehyde in manufacturing the declared end-product, so penalty under section 5(3-B) was not attracted; any issue with the return or classification of the finished goods was left to other remedies such as assessment correction or prosecution. Case-Laws VAT and Sales Tax Tue, 21 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156592